Electronic Data Capture (EDC) machines are offered by very many banks today. They are available as a portable wireless GPRS machine and a wired machine [IP based or Standard Dial Up terminals]. You can apply for a portable EDC if you wish to carry it around. I recently applied for one through HDFC after collecting details from various shop owners locally who have current accounts in different banks.

All you need is a current account in any bank to begin with. The bank itself provides the EDC machine to current account holders. Some banks sponsor the same depending on the turnover. The PoS terminal can be bought or rented from banks. You have a definitive choice- you can either purchase your own EDC machine and apply for Merchant Services from the bank or you can rent one from the bank where you have a current account.

The charges you may incur as as follows- The current account in the bank will have a stipulated minimum account balance. Most banks do not charge a monthly rental for a wired EDC machine. Wireless EDC machines have a basic rental if you choose private banks like ICICI or HDFC. HDFC charges me a basic one time installation fee of Rs 2000, Rs 650 per month as rental for the EDC machine, the minimum card swiping value per month being Rs 25, 000, failing to meet which I get charged Rs 250. The basic current account balance is Rs 25, 000. Whereas vendors who use machines from Karnataka Bank and SBH are not charge monthly rentals [as per the information I collected from shop owners who use wireless EDC machines]. The commission you pay per transaction is 0.75% and 1% above Rs 2000 [RBI mandated pricing] for debit cards and upwards of 1.4% upto 2% or more for credit cards. The credit card transaction fee reduces with the value of swiping at your business. The quality of service, technical support and time taken for immediate assistance for any issues with the EDC machine varies across vendors who offer them.